“So you still think you got a good deal,” Action News Investigator Heather Catallo asked of Allen Park Mayor Gary Burtka. His response: "Yes, we did get a good deal.”
But did they? Our investigation is raising questions about whether or not the city drastically overpaid for the property they’ll be paying off for the next 30 years.
Despite the size of the purchase, Allen Park officials admit they never had the property or building appraised. Experts we talked to called that highly unusual, especially for a purchase this large. Most people would never dream of buying a home without having it appraised, but Mayor Burtka disagrees.

The expert selected by WXYZ, the president of the commercial board of Real Estate for the State of Michigan, said, “I would view this property, at the point of time of the sale, could have been as low as $5.2-$5.5, could be as high as $7.5 to $8 Million.”

Now lets do some comparison shopping. The developers of the Raleigh Studios in Pontiac bought a 368,000 sq. ft. building (built in 1999) from GM for $3.7 million or $10.05 per square foot. The expert believes the former Visteon Building is worth between $6.50 and $10.00 per square foot.

The taxpayers won't be deciding. Just paying. That's why government officials are so loose with tax money -- to business and labor alike. Its not their money, and by the time they've signed the contract, its over baby.

I don't think this warrants an EFM, but I do think the taxpayers will ultimately get stuck with the bill. Interestingly, Burtka defended this decision to avoid foreclosure on the property to stem blight. Well, what have you got now?

That might be endemic to the democratic process. We let those who want the job get it. I'm pretty sure history shows that isn't how leaders are made. Rather, egos are fed...the exacerbators of the worst of human nature. Yeah, we're screwed. The fourth estate has sold us out to the corporations...and we now have the government that we deserve. Cheers!

AP should look at making part of that property the City Hall. They have needed a new one for years now. The site of the old City hall could be marketed for some type of roadside retail (gas, fastfood, 7-11). That would raise some money to help fill the hole they dug. They should aso try to get other tennants in there as well, though the office market is still far from being recovered.

I don't think they realized that they do have some options, granted they are not great, but they could turn this around.

The failed studio is only part of the problem. Companies like Frito Lay and Smirnoff that left years ago were the begining of the decline. All communities are hurting, Taylor just laid off 17 firefighters. That property has value. Easy access to 3 freeways, 10 minutes to Metro Airport and Greenfield Village, and rail access. They just need to market it better. Clearly there was wrongdoing between the former mayor and the studio head. Wasn't the state looking into this?

The failed studio is only part of the problem. Companies like Frito Lay and Smirnoff that left years ago were the begining of the decline. All communities are hurting, Taylor just laid off 17 firefighters. That property has value. Easy access to 3 freeways, 10 minutes to Metro Airport and Greenfield Village, and rail access. They just need to market it better. Clearly there was wrongdoing between the former mayor and the studio head. Wasn't the state looking into this?

No they were too busy drooling at the idea of forcing an EFM on the CoD...

With all the tickets their cops write on that Southfield freeway speedtrap, you would have a hard time thinkng there would be any money trouble in that city - It's like a three lane cash register.Let there be a EFM appointed. Or, let the city be absorbed. I could care less.

Little feifdoms like Allen Park, Lincoln Park, Melvindale, etc, should not even exist.

Folks who used to live sold out farming plots and upcoming industrial sub-divisions of Ecorse TWP. Don't want to be absorbed by Detroit's fast growing annexation attempts. So those little suburban fiefdoms have to exist for cheap taxation and create their own munipalities. Most of the downriver suburbs don't even want to form a city of Ecorse from The Detroit River to Pelham Rd. Lincoln Park want to gets it hands of the southern portion of Ecorse TWP. So residents rushed to incorporate the City of Southgate. Allen Park got its hands of the northern piece of Ecorse TWP. just north of Outer Drive Rd. That would pervent either Dearborn and Melvindale for annexing that area.

The state didn't pull the plug on Reliegh Studios in Pontiac, MI. (YET)Unity Studios pull the plug themselves because they can't pay their bills. To all you politicians who want support any risky regional projects. Let them show their proposals, how much its going to cost, what land are they going to used to built their infrastucture, what safety net is going to happen if this project fails.

The Allen Park City Council didn't see the potential red flags of Unity Studios. There was no saftey net between them and now they city and its folks will have to pay the price.

The state didn't pull the plug on Reliegh Studios in Pontiac, MI. (YET)Unity Studios pull the plug themselves because they can't pay their bills. To all you politicians who want support any risky regional projects. Let them show their proposals, how much its going to cost, what land are they going to used to built their infrastucture, what safety net is going to happen if this project fails.

The Allen Park City Council didn't see the potential red flags of Unity Studios. There was no saftey net between them and now they city and its folks will have to pay the price.

Let's not let the APCC off that easy. Didn't see the red flags of a $25 Million property purchase? It is thier job to find and discuss the red flags of any decision they support or oppose!!! All levels of AP government failed, from the staff assistants to the mayor. They didn't even get an appraisil, so either they didn't do their due dilligence or they chose to ignore the facts... either way this is not just bad luck it is irresponsible governance on anyone who voted thier support.

Let's not let the APCC off that easy. Didn't see the red flags of a $25 Million property purchase? It is thier job to find and discuss the red flags of any decision they support or oppose!!! All levels of AP government failed, from the staff assistants to the mayor. They didn't even get an appraisil, so either they didn't do their due dilligence or they chose to ignore the facts... either way this is not just bad luck it is irresponsible governance on anyone who voted thier support.

Still the studio in Pontiac will be built. If there's any red flags. Those film producers will restitute 25 million dollars to City of Pontiac and the State of Michigan.

The State pulled the plug on the the movie industry, so the movie industry pulled the plug on Allen Park. Hey thats how it is sometimes.

Sorry, no - that is not how it is sometimes.

Here is the timeline:

Early 2009: Unity Studios cuts a deal with Allen Park
April 2010: Unity Studios is in default on their lease and Allen Park begins eviction process
Early 2011: State caps (not pulls the plug) movie subsidies to $25 million annually.

So the capping happened well after Unity caused their own problems. It was DOA in 2010.

This is all irrelevent to the fact that Allen Park city officials failed to look out for the taxpayers.